Fitch: No change for Taiwan Semiconductor

Fitch Ratings said the A- long-term issuer default rating and stable outlook for Taiwan Semiconductor Manufacturing Co. Ltd. are not affected by news of a share buyback plan to purchase the company's common shares from the open market.

Fitch said it believes these share buyback plans will have negligible negative impact on the company's credit metrics. Assuming continuous buybacks to retire the entire remaining stake owned by Philips while maintaining its current annual cash dividend per share in 2008 and 2009, the company is likely to continue generating positive free cash flow and maintain its net cash position, the agency said.

The agency also said the company has strong cash-generation capabilities with cutting-edge technology and a diversified client base.

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